Poorest will be 'hit hardest' by state pension age rises, warns charity

The poorest and most disadvantaged are set to be hit the hardest if state pension age continues to rise based on life expectancy alone, according to new research.

The charity Age UK, has revealed that increases in average life expectancy have led to a rise in the state pension age in recent years, which is expected to reach 67 by 2028 for both men and women. Yet, there are many living in deprived areas and lower social classes who are unlikely to make it to state pension age in good health.

Caroline Abrahams, Age UK’s charity director, said: “We already know that increasing the state pension age based on average life expectancy will cause hardship for many people.

“It is, of course, reasonable to consider raising the state pension age as overall life expectancy goes up – but as a blanket approach, it risks leaving many people facing serious problems in later life through no fault of their own. In fact, as the state pension age climbs ever higher, many of those with lower life expectancies – who are also likely to be on lower incomes – may end up with little or no time left in retirement to enjoy.

“We would urge the Government to consider all the options before making further changes to the state pension age. Increasing the state pension age for everyone, regardless of caring responsibilities or health and employment opportunities, seems unfair and penalises thousands of people at a time in their lives when they most need support. As this research shows there are a number of ways to help the many thousands of people who are, for whatever reason, unable to work into their late 60s.”

Research reveals that those in manual work or with caring responsibilities are most likely to be ‘hit the hardest’ by state pension age increases.

While most people will live to 67 and beyond, there are many, particularly men in more deprived areas and lower social classes, who are unlikely to make it to state pension age in good health. In Glasgow City, figures show that healthy life expectancy at birth is just 55 years for men and 58 years for women, ten years below the current state pension age.

With healthy life expectancies varying greatly across the UK, and inequalities widening between deprived and affluent areas, the charity believes increases to the state pension age must not be based on life expectancy alone.

Currently, people can claim the new state pension at state pension age if they have at least ten years National Insurance (NI) contributions and are: a man born on or after 6 April 1951, and a woman born on or after 6 April 1953.

According to the Pensions Policy Institute (PPI), allowing people with more than 45 years of National Insurance (NI) contributions to receive their full state pension early could enable up to a quarter of a million people to enjoy a much-needed retirement after decades of physically demanding, manual work.

John Adams, the PPI’s senior policy analyst and author of the briefing paper, added: “With increasing life expectancies in the UK it is understandable that the Government might wish to increase state pension age, but care should be taken to recognise the impact on people who may be unable to continue in work, for example, as a result of health issues or caring responsibilities.”